Receipt of shares of amalgamated company by the shareholders of amalgamating company in lieu of their shareholding in amalgamating company is transfer within the meaning of section 2(47) and 45 of Income Tax Act,1961. If on the date of amalgamation, the shareholders of amalgamating company held those shares as capital asset, such transfer would be exempt from capital gains tax under section 47(vii).If on the other hand such shares were held as stock-in-trade, such transaction would be taxable as normal business income under section 28. Capital gains taxation scheme of 1961 Act in the form of S. 2(14), 2(47), 45 and 47 is different from similar scheme under section 12B of Income Tax Act,1922. Therefore, Supreme Court Judgement in CIT Vs Rasiklal Maneklal HUF (1989) 177 ITR 198 (SC) rendered under Income Tax Act, 1922 is not applicable to an amalgamation under 1961 Act. Such amalgamation is governed by CIT Vs Grace Collis (2001) 248 ITR 323 (SC)